Profit in business is the money a business earns after accounting for all expenses, costs, and taxes involved in sustaining the business activity. It is the amount of money left in a business bank account after all expenses have been paid. There are three main types of profit: gross profit, operating profit, and net profit.

• Gross profit is the profit that results after deducting the costs of goods sold (COGS) from revenue. It shows what money was left after paying for the goods and services sold.

• Operating profit is the profit that shows whats left after paying operating costs such as rent, electricity, phones, and in some cases staff. It measures how effectively a business is spending money to make its products and maintain day-to-day operations.

• Net profit is the final indicator of profitability. It shows what a business made after deducting all costs and tax. It takes into account the cost of debt to a business, income received from business investments, and taxes. This figure is then deducted from or added to operating profit.

Profit is a core measure of business success and is vital for businesses of all sizes and shapes to know how much money is being kept after expenses. Profitable companies are attractive to investors as profits are either returned to shareholders as dividends or reinvested in the company, increasing stock value.